Key takeaways
- Only 46% of U.S. adults have enough emergency savings to cover three months of expenses, making saving money more crucial than ever.
- Automatic transfers to high-yield savings accounts earning over 4 percent APY can help build emergency funds without extra effort.
- Cash-back apps and comparison shopping can save hundreds annually on everyday purchases like groceries, gas, and insurance.
- Simple changes like switching to generic brands, negotiating bills and using coupons can free up significant money for savings.
Saving money feels overwhelming when 46% of U.S. adults have enough emergency savings to cover three months of expenses, according to Bankrate’s 2025 Emergency Savings Report. With 24% having no emergency savings at all, finding ways to cut expenses and build savings has become essential for financial security.
The challenge isn’t just about earning more — it’s about spending less and saving smarter. Even small changes to your spending habits can add up to significant savings over time. Whether you’re building your first emergency fund or trying to reach a specific savings goal, these 14 proven strategies can help you keep more money in your pocket.
1. Review your spending habits
Before implementing any money-saving strategies, you need a clear picture of where your money currently goes. Most banks and credit card companies provide categorized spending reports through their online platforms or mobile apps, showing you exactly how much you’re spending on groceries, entertainment, utilities and other categories. Here are some examples of bank accounts that come with built-in budgeting tools.
- Track everything for at least one month: Review bank statements, credit card bills and cash receipts to understand your spending patterns. Many people are surprised to discover they’re spending far more than expected on subscription services, dining out, or impulse purchases.
- Identify spending leaks: Look for recurring charges you forgot about, subscriptions you no longer use or categories where you’re consistently overspending. Common culprits include streaming services, gym memberships and automatic renewals for apps or software you rarely use.
2. Automate your savings
Setting up automatic transfers from your checking to your savings account each payday removes the temptation to spend money before saving it. This “pay yourself first” approach ensures consistent saving without requiring ongoing willpower or decision-making.
First, calculate your monthly expenses and determine how much you can realistically save each month. Consider automatically transferring a percentage of each paycheck — such as 10% or 20% — rather than a fixed dollar amount. This approach scales your savings as your income increases and helps build the habit of living below your means.
Many budgeting apps can track spending, issue overspending alerts and automate savings transfers. Apps like YNAB (You Need A Budget) and Mint can help coordinate your spending and saving goals in one platform. Here’s Bankrate’s picks for best money-saving apps.
3. Use cash-back apps and credit card rewards
Cash-back apps can reduce your overall spending on purchases you’re already making. These tools work best when used strategically for planned purchases rather than encouraging additional spending. Here are some of the best cash back apps on the market today.
If you pay off credit card balances in full each month, cash back credit cards can provide 1-6% back on purchases. Stack cash-back apps with rewards credit cards for double savings.
4. Reconsider your mobile provider
Cell phone plans often include features and data allowances far beyond most users’ actual needs. With increased competition among mobile providers, switching carriers can provide significant monthly savings without sacrificing service.
Companies like Mint Mobile, Visible and Ting Mobile often offer plans 30-50% cheaper than major carriers while using the same cellular networks. Research coverage in your area and compare plan features to find the best value. Plus, check your phone’s data usage statistics to determine how much data you actually use monthly. If you primarily use Wi-Fi at home and work, you may be paying for more data than necessary.
If multiple family members need service, family plans from both major and smaller carriers often provide better per-line pricing than individual plans. But before switching, call your current carrier to discuss potentially lowering your monthly bill. Many providers offer retention discounts to customers considering switching to competitors.
5. Turn off spending-related notifications
Your smartphone can be a powerful money-saving tool, but it can also trigger impulse purchases through promotional notifications, deal alerts and targeted advertising. Taking control of these digital spending triggers can significantly reduce unplanned purchases. This includes:
- Unsubscribe from promotional emails
- Disable app notifications
- Remove shopping apps from your phone
6. Shrink your utility bills
Home utility costs continue rising, but several changes can reduce your monthly bills without significantly impacting your comfort or convenience:
- LED lighting savings: The U.S. Department of Energy estimates that switching to LED bulbs can save the average household around $225 annually.
- Seal air leaks: Weather-stripping around doors and windows, along with sealing air ducts, can reduce heating and cooling costs by 10-20%. Many utility companies offer free energy audits to identify the most impactful improvements for your home.
- Smart thermostat benefits: Programmable and smart thermostats can reduce heating and cooling costs by automatically adjusting temperatures when you’re away from home.
- Water conservation: Installing low-flow showerheads, fixing leaks promptly, and watering lawns during cooler morning hours can significantly reduce water bills.
- Energy assistance programs: The federal Low Income Home Energy Assistance Program (LIHEAP) helps eligible households pay energy bills, weatherize homes, and make energy-related repairs. Check your local utility company for additional rebate programs.
7. Evaluate your entertainment expenses
Entertainment subscriptions can quickly add up to $100+ monthly. Regularly reviewing and optimizing these services can free up significant money for savings.
Instead of paying for multiple streaming services simultaneously, consider rotating subscriptions monthly or seasonally. Services like Sling TV, Hulu, and Fubo often cost 50-70% less than traditional cable packages while offering access to popular content. If you’re already an Amazon Prime member, take advantage of the included Prime Video streaming service and Prime Music to potentially eliminate other subscription costs.
Public libraries offer free access to movies, music, audiobooks and digital content through apps like Libby. Many libraries also provide passes to local museums, zoos, and cultural attractions on a first-come, first-served basis.
8. Take advantage of free local attractions
A little research can help you find fun, affordable attractions and activities in your local area. For instance, some museums and art galleries offer free admission on certain days of the week or month. Libraries may offer passes to zoos or museums on a first-come, first-served basis. Or you can just head outdoors for a hike, bike ride or picnic.
Your bank may even offer free access to attractions. For example, Bank of America’s Museums on Us program gives the bank’s debit and credit card holders complimentary access to more than 225 cultural institutions across the country.
9. Be a strategic grocery shopper
While you’ll need to keep buying food despite higher prices, you can learn how to save money on groceries. One method is to avoid throwing away unused food. Households in the U.S. waste a total of $473 billion in food each year, which comes out to 38 percent of all food in America, according to nonprofit organization Feeding America.
As you make your grocery list, think about what you threw away last time and how to avoid letting that happen again. The study found that those who made a shopping list before going to the store typically threw away less food, so take extra time to plan out your upcoming meals. Also, take a tour of your pantry first and build your meals around what you already bought. Check out these additional tips for saving money on groceries.
10. Break up with brand names
Speaking of groceries, consider whether you really need to pay for expensive brand-name foods. A comparison of ingredients and labels on things like noodles, cereal and spices may show generic alternatives to be just as nutritious and high-quality as their top-shelf counterparts.
The same concept can apply to non-food items such as paper products, hand soap and laundry detergent. Try to find more affordable alternatives for any such brand-name household items you buy. You can always switch back to your original choice if you’re not happy with the lower-priced alternative.
11. Explore other banking options
Banking fees can drain hundreds of dollars annually from your accounts. Shopping for better banking options can eliminate these unnecessary costs:
- Online banks like Ally Bank, Discover Bank, and Marcus by Goldman Sachs typically don’t charge monthly maintenance fees on checking or savings accounts. They also frequently offer higher interest rates than traditional banks.
- High-yield savings benefits: Online high-yield savings accounts currently offer rates around 4.00 percent APY, compared to the national average of 0.6. Moving $10,000 from a traditional savings account to a high-yield account could earn an additional $400 annually.
- ATM fee reimbursements: Many online banks and credit unions reimburse ATM fees charged by other banks, potentially saving $5-15 monthly for frequent ATM users.
- CD and money market options: If you have funds you won’t need for several months or years, certificates of deposit and money market accounts from online institutions often provide significantly higher returns than traditional savings accounts.
12. Compare car insurance rates
If you have a track record of safe driving, it can pay to shop around for a good insurance provider that will reward you for your responsible behavior. Compare other car insurance quotes with what you currently pay to see how much you can lower your premiums for the same amount of coverage.
Those who don’t spend much time behind the wheel may be able to cut costs by going with usage-based insurance, which can tailor your coverage to fit how much you actually use your vehicle.
13. Use coupons and promotional codes
Couponing might sound old-school, but finding deals doesn’t always require clipping portions of the Sunday newspaper. When you’re shopping online, take a few minutes to search for a coupon code when websites offer a “promo code” box on the checkout page.
Browser extensions like PayPal Honey and Coupert automatically search for online coupons while you shop. Capital One Shopping is another tool that can find online deals automatically, and it’s available to everyone — not just Capital One customers. It works by searching for coupon codes, best prices and rewards at more than 30,000 online retailers.
14. Challenge yourself to a spending freeze
Try taking control of your finances by embarking on a spending freeze during which you cut all unnecessary spending for a set period. This could give you a sense of how much you’re spending on nonessentials like trips to the coffee shop. Add the extra money you have at the end of the month to your savings or use it to pay down debt.
The bottom line
If you’re serious about reaching your financial goals, our 14 tips on saving money offer you a good starting point. Now that you have a basic understanding of how to save money, it’s a good idea to plan where you’ll allocate your savings — and put your plan into action.
For example, if you want to bulk up your emergency fund, transfer any savings out of your checking account each week or month so you’re less likely to spend it. If you need to pay down debt, create additional payments that automatically come out of your bank account. Whatever your goals, make the process of saving as effortless as possible.
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